Market Structure:
In trading, market structure refers to the overall framework of price movements on a chart, helping traders understand trends, key levels, and potential future price movements. It consists of several key elements:
* Trends (Directional Movement)
- Uptrend: Higher highs (HH) and higher lows (HL) indicate a bullish market.
- Downtrend: Lower highs (LH) and lower lows (LL) signal a bearish market.
- Sideways (Range-bound): Price moves within a horizontal range without a clear direction.
Types of Market Structure with charts:
In this type, the Market goes up, takes a pullback, and again goes up, forming an “N” shape pattern.
In this Type, the Market goes sideways for 3 to 4 hours forming a consolidation and give an upward or downward break.
In this Type of Market Structure, the market goes upward for a long time, forming an Uptrend or downward, forming a Downtrend.
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